Russia Using Bitcoin, USDT For Oil Trades With China & India; Report

Russian companies are leveraging cryptocurrencies like Bitcoin and USDt to bypass international sanctions, particularly in trade with China and India. Reuters reports that oil companies are actively using these digital assets for international transactions, with some traders handling tens of millions of dollars monthly. The transactions involve intermediaries managing offshore accounts and facilitating payments in the buyer's local currency. These intermediaries convert payments into crypto and then to rubles in Russia. This method allows Russia to sidestep financial restrictions and conduct trade more efficiently. The use of crypto is expected to continue, even if sanctions are removed, due to its convenience. The Bank of Russia is also proposing to legalize cryptocurrency investments for high-net-worth individuals. While Russia embraces crypto, China maintains strict restrictions, banning most crypto transactions since 2021. Despite restrictions, China remains a leader in Bitcoin mining, and some believe they will not ignore Bitcoin's growing influence. Data suggests the Chinese government may possess a substantial Bitcoin reserve.